GIRNAR IMPEX (P.) LTD. Vs. CIT

JUDGEMENT

(1.) THE above mentioned four appeals arise out of the common order dated 2 -6 -2010 pertaining to assessment years 2003 -04 and 2004 -05 passed by the Income Tax Tribunal, Chandigarh Bench, Chandigarh, (hereinafter referred to as the Tribunal).

(2.) ALL the appeals raise identical question and are of a same group. Therefore, for facility of reference, the facts are taken from ITA No. 30 of 2012. The grievance of the appellant in the said appeal, in respect of the assessment year 2003 -04, is in respect of disallowance of Rs. 10,25,000 on the basis of consumption of coal estimated at 2.25% then 2.80% declared by the appellant. In the assessment year 2004 -05, the disallowance has been made in respect of consumables stores and oil/lubricants. The assessee has claimed following substantial questions of law as are arising for consideration by this Court:

(3.) THE learned Commissioner of Income Tax (Appeals) has found that spiral pads were taken in possession by the Department for the period relevant to assessment year 2003 -04 and 2004 -05 during search operations. Such pads disclosed details of cash withdrawn from the bank account of the various coal and fuel suppliers of the appellants. On the basis of such information, the Commissioner of Income Tax (Appeals) found that the expenditure incurred on coal and fuel has been shown as Rs. 52,13,356 against the sales of Rs. 18,09,50,955. In percentage, the expenditure incurred on purchase of coal and fuel comes to 2.80%. The Commissioner of Income Tax (Appeals) found that, in the assessment year 2004 -05, the appellants have shown such expenditure as 1.9% only. Therefore, reduced the amount of disallowance from Rs. 17,37,785 to Rs. 10,25,000.